Top CD Rates Today: June 5, 2024 | Lock In 5% APY Or Higher

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Jun 05, 2024 / 5 min read

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**Key takeaways:**
– The highest CD rate across terms is 5.36% APY, offered for a one-year term.
– The most competitive APYs are often found at online-only banks.
– Highest CD rates on most terms are at least triple the national averages.

A certificate of deposit (CD) is a bank account that earns a fixed rate of return in exchange for locking in your funds for the entire term. CD terms often range from three months to five years, although it’s possible to find ones with terms shorter or longer than that. A CD can be a good place to stash money for savings goals, such as a down payment on a house or a new car. When choosing the best CD term, consider when you’ll need access to the money.

Leading annual percentage yields (APYs) on many CD terms have held steady since May 30, while others have remained unchanged since early May. Securing a high APY now on a fixed-rate CD means your rate will stay the same until the CD’s term is up, even if rates on new CDs continue to decrease in 2024. The highest APY offered is still 5.36 percent, which is available on a one-year CD term.

The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $5,000 deposit.

**Today’s best CD rates by term:**

– **3-month:** Popular Direct
– **6-month:** Popular Direct
– **9-month:** Forbright Bank
– **1-year:** CIBC Bank USA
– **18-month:** LendingClub
– **2-year:** First Internet Bank of Indiana
– **3-year:** First Internet Bank of Indiana
– **4-year:** First Internet Bank of Indiana
– **5-year:** First Internet Bank of Indiana

Note: Annual percentage yields (APYs) shown are as of June 5, 2024. APYs for some products may vary by region. N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

**What to look for in a CD:**
In addition to a CD’s APY, look for a CD that has a minimum deposit requirement with which you’re comfortable. Depending on the bank, you may be required to deposit between $0 and $10,000 or more. Another factor to consider is the amount you’d be charged for an early withdrawal. While you should only commit funds to a CD that you can afford to part with until the CD matures, it’s still helpful to be familiar with the terms of its early withdrawal penalty.

**What the current rate environment means for CDs:**
In 2022 and 2023, the Federal Reserve raised its benchmark interest rate a total of 11 times, bringing its current target range to a 23-year high of 5.25-5.50 percent. However, the Fed has left rates unchanged for six straight meetings, due to inflation not slowing as quickly as it has in the past. Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. While the Fed has held rates steady since July 2023, top CD APYs ended up peaking in late 2023 and have since been decreasing gradually.

**Is it still a good time to open a CD?**
“Even though CD yields have pulled back a bit, you’re still able to lock in yields that are well in excess of inflation and do so for multiple years,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “The declines will likely accelerate as we get closer to the Fed beginning to cut interest rates, so there is no sense in waiting.”

**CD FAQs:**

**Research methodology:**
Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks. In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.